Volkswagen wants separate divisions for software and battery production

The VW Group wants to separate the development of hardware and software, and set up a separate division for the latter category. In addition, Volkswagen is setting up a separate business unit for the production of batteries for electric vehicles.

Volkswagen wants to transfer the responsibility for the development of car software to a new business unit with its own management function. This was announced by the company’s CEO, Herbert Diess, during the World Economic Forum in Davos. By separating software from hardware, VW should be able to accelerate development and reduce costs, DPA reports.

At the same time, Reuters reports that Volkswagen will set up a separate unit for the production of batteries for electric cars. The division will produce new batteries and recycle old batteries. The company is investing 870 million euros in components for electric vehicles until 2020. The investment is accompanied by a reorganization of the divisions that make traditional engines, gearboxes and steering components.

The production of batteries for electric vehicles is receiving increasing attention from the automotive industry. On Wednesday, Panasonic and Toyota announced a joint venture for this production.